Spectrem Millionaire Index Rises 5 Points December

Spectrem Millionaire Index(TM) rose 5 points in December to a level of 18, remaining in mildly bullish territory and posting its first back to back gains of 2005. The millionaire index's consecutive advances in November and December brought it up

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Spectrem Millionaire Index(TM) rose 5 points in December to a level of 18, remaining in mildly bullish territory and posting its first back-to-back gains of 2005.

The millionaire index’s consecutive advances in November and December brought it up a total of 18 points from October’s reading of zero, which is the index’s all-time low dating back to its inception in February 2004.

The Spectrem Affluent Investor Index(TM), which measures the investment outlook of households with $500,000 or more in investable assets, added 4 points to a level of 8, which remains a neutral reading. Like the millionaire index, the affluent index also ended the year with its first back- to-back gains of 2005.

Millionaires and affluent investors expressed significantly less concern about oil and gas prices when asked about the most serious threat to their household financial goals. Both groups ranked the economy as No. 1.

“Millionaires and affluent investors alike ended 2005 on a positive note, posting their first back-to-back gains in investment optimism of the year,” said George Walper, Jr., president of Spectrem. The millionaire index finished the year 2 points below its level at the start of 2005 and the broader affluent population ended up exactly where it began.

In response to an open-ended question about the biggest threat to their household financial goals, affluent investors cited: the economy (14%), the cost of living (8%), health related issues (8%), unemployment (7%), the presidential election and results (6%), and oil and gas prices (4%). Concern about oil and gas prices fell from 8% in September, when this question was last asked, and 6% in June.

Similar to the affluent, 15% of millionaires cited the economy as the greatest threat to their household financial goals. Ranking immediately behind the economy for millionaires were the cost of living (8%) and the presidential election and results (8%). Just 3% of millionaires chose oil and gas prices as the No. 1 threat, compared to 6% the last time this question was asked.

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